Employer-sponsored health coverage is nowhere close to going the way of the dodo bird. Many surveys of employers, particularly large ones, have provided proof that companies believe offering health coverage is a key element for retaining and attracting top talent.
More evidence now comes from a study by LIMRA, the life insurance research and consulting organization. Among other things, the study, titled "Employee Benefits at a Crossroads," found:
- Nearly 80 percent say employers should pay some or all of the premium for their workers' benefits.
- In terms of plan choice, 57 percent believe employees want plans with multiple benefit choices and plan features. Thirty-five percent say they believe their employees want limited choices.
- To attract new employees, nine out of 10 employers say they must offer medical insurance.
That said, employers are still worried about how to manage the cost of health coverage. They're still uncertain about the effects of the Patient Protection and Affordable Care Act, and they clearly intend to increase cost-sharing strategies with those covered.
Key findings to support these cost concerns:
- Just over half of the surveyed employers expect the PPACA to have a negative impact on their ability to offer medical benefits in the near future.
- 85 percent said controlling the costs of health care is an important or critical challenge.
- 67 percent said employees need to take more responsibility for their benefits.
But are employers making a concerted effort to find out from employees what they want? Not so much. Here's the feedback on employee input:
- Less than half of employers said they conduct employee benefit surveys "once in a while."
- Just 15 percent conduct benefit surveys on a regular basis.
- 38 percent said they never do them.
- Eight percent of employers said they were not sure how much choice their employees wanted in their benefit packages (although by asking, they could probably find out).
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Dan Cook
Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.
